Despite Bitcoin’s price trading within a tight range of $58,000 to $59,000, a notable accumulation trend among larger holders suggests increasing confidence in the cryptocurrency’s prospects.
According to recent data from Santiment, wallets holding between 10 to 10,000 BTC have collectively added 133,300 BTC to their holdings over the past month. At an estimated price of $60K, this implies that whales have committed around $8 billion to the Bitcoin market since last month.
Notably, as of August 27, 2024, these larger holders control approximately 66.6% of the total Bitcoin supply, indicating a significant concentration of the cryptocurrency among this group.
A key event referenced is Mt. Gox’s consolidation of trustee wallets. Following the consolidation, there was a noticeable decrease in the percentage of Bitcoin held by Mt.Gox.
In July, this trend became more pronounced when the bankrupt exchange began creditor repayments. According to data, the Bitcoin market experienced a decline, with prices dropping by 6.87% as the exchange moved 47,229 BTC in its first transaction.
Despite this volatility, the chart indicates a recovery phase where the 10 to 10,000 BTC holders began to accumulate Bitcoin once again.
Bitcoin Wallets Across Different Segments
Further data from IntoTheBlock confirms this trend, showing varying behaviors across different wallet sizes. Wallets between 10 and 100 BTC have increased by 0.23%, while those with 100 to 1,000 BTC have grown by 1.71%. The 1,000 to 10,000 BTC segment has also seen a 0.20% increase over the past 30 days.
In contrast, smaller wallets show less activity, with a mere 0.07% increase in wallets holding 0.001 to 0.01 BTC and a 0.14% decrease in wallets holding 0.1 to 1 BTC.
This divergence suggests that while larger holders are accumulating, smaller traders may be reducing their holdings, potentially transferring them to larger players.
Analyst Notes a Positive Signal
This accumulation, accompanied by positive signals, might lead to a favorable movement for Bitcoin. Notably, analyst Ali Martinez has observed that the TD Sequential indicator has presented a buy signal on Bitcoin’s 12-hour chart, suggesting a potential price rebound.
The indicator displayed a green “9” candle, signaling that the recent downward trend could be nearing exhaustion. This could potentially lead to a reversal or at least a pause in the selling momentum.
Before this, Bitcoin had experienced a decline from around $64,000 to around $59,000, marked by sustained selling pressure. Following the appearance of the TD Sequential “9,” the price action shows signs of stabilization, with smaller-bodied candles indicating market indecision and a possible bottoming process.
Major Players Buying The Dip?
In yet another positive development, Ali Martinez observed that significant players appear to have taken advantage of a dip in Bitcoin prices, leading to substantial buying activity. On-chain data from Santiment reveals that the Bitcoin exchange supply dropped by 40,000 BTC over the past 48 hours, equivalent to approximately $2.40 billion.
This decrease in exchange supply aligns with a notable surge in exchange outflows, indicating that investors are moving their assets off exchanges.
Correlation Between Bitcoin and S&P 500 Movement
On Thursday, Bitcoin’s price rebound exhibited a striking similarity to the upward movement of the S&P 500, further underscoring the strong correlation between the two assets.
According to Santiment’s analysis, this synchronization is not an isolated incident. The concurrent rise of the S&P 500 and Bitcoin suggests that broader market trends currently influence cryptocurrency prices.
Further, Bitcoin often experiences breakouts when market participants are not heavily dependent on external factors.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
Source: https://thecryptobasic.com/2024/08/30/bitcoin-price-holds-at-58k-59k-as-large-wallets-accumulate-133-3k-btc/?utm_source=rss&utm_medium=rss&utm_campaign=bitcoin-price-holds-at-58k-59k-as-large-wallets-accumulate-133-3k-btc